Insights from Malaysian Manufacturers on Cloud ERP
At a recent event with the Federation of Malaysian Manufacturers (FMM), I had the opportunity to discuss the shared concerns many Malaysian manufacturers have regarding cloud ERP (enterprise resource planning) adoption.
Malaysia has recently seen a rapid improvement in infrastructure and network capabilities–enabling businesses to adopt new technologies and drive their digital transformation journey. As a result, cloud services are perceived as a key enabler and accelerator for digital transformation, with IDC predicting that the adoption rate of public cloud and hosted private cloud is expected to grow by 20.4 per cent by 2020.
Malaysian enterprises have been slow to adopt cloud technologies compared to other leading Asian countries, such as Singapore, Japan and Australia. This cloud hesitancy was reflected during the FMM event where most manufacturers shared concerns around the security and privacy of cloud ERP.
This was echoed in a recent ERP-to-cloud migration report by Mint Jutras, where 55 per cent of the 400 global respondents expressed concerns over security. The reality is that security must be a primary consideration for any deployment option, whether it’s cloud, hosted or on-premises. Manufacturers should review the strengths and weaknesses of each approach based on the requirements of their operating environment.
For small and medium sized businesses in particular, the functionality and security capabilities offered by leading providers is likely to provide the most cost effective solution. According to the Mint Jutras report, 33 per cent of respondents said they noticed an improvement in their IT security when they deployed solutions in the cloud.
This is the second year running that the Epicor Asia team collaborated with the FMM to host an event, and it proved to be a great opportunity to listen, first-hand, to the concerns manufacturers have around cloud adoption. As we work to provide greater support and guidance for the adoption of cloud ERP, there is also a strategic opportunity for organisations to undertake some business process re-engineering. Striking a balance between keeping existing or familiar business processes and embracing what the cloud has to offer is critical for businesses standing at the edge of digital transformation.
Posted by Roger Ling, Senior Product Marketing Manager, Cloud, Epicor